For six years, we have been exploring various methods for collecting andencoding text for electronic typesetting by the Government Printing Office. Eliminating both the rekeying of manuscripts by typesetters and the galley proof stage of production has cut our typesetting costs 80 percent. We continued to improve upon our existing coding formats, by simplifying several codes. We also diagnosed an error in one of the GPO programs, and worked with GPO to solve the problem. We met with GPO on behalf of the NIH Printing Branch to investigate the notion of a telecommunications between GPO and NIH, similar t what is now used by FDA and the Congress. This proved to be only a distant possibility, lacking appropriate computer resources at NIH. For the first time, we tested our typesetting methods using floppy disks rather than magnetic tape. Although it complicates some aspects of internal production, floppies promise better return time and offer better control. The FY1987 DCRT ANNUAL REPORT is the first publication produced with this method.